Re Tripp, Alan Terence Ex Parte Barnes, John Craven

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Trustee

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hanlCf~QX, namely b n

21st March, 1985, he and Catherine Marie Tripp were registered as proprietors as joint tenants of the property and the land has at

all material times been subject to two registered mortgages.

The first mortgage is to Pyramid Building Society, the

amount secured by the mortgage as at 31st December l085 being

$38,906.88.

The second mortgage is in favour

of Westpac Banking

Corporation and the amount presently outstanding is approximately

$37,500.00.

The value of the land

is approximately $90,000.

There is some dispute as to the enforceability of the debt

to the Bank because there is a contention that the debt is for

money advanced for the purposes of carrying on an illegal

business, namely that

of a starting prlce bookmaker and

that the

rlebt is not provable. The Bank disputes that contention and the

trustee has been advised that his prospects

of success on that

contention, if it should come to litigation, are minimal.

The family of Catherine Marie Tripp has made an offer to

the trustee to purchase the bankrupt's interest

in the land for

$12,000.00,

upon the following terms:-

(3.)

payment of a deposit of 10% of the purchase price
on signlng contracts with the balance due following
approval of the sale;

-4-

I order that the costs of the trustee of and lncidental to

this application be taxed and paid from the estate	of the
bankrupt.
I certify that this and the h b - u (3)

preceding pages are a true copy	of the
Reasons for Judgment herein of
his Honour Mr Justice Jackson.
Associate:

CaseChat Overview and Summary

The matter before the court involved Alan Terence Tripp, who was declared bankrupt, and John Craven Barnes, the trustee of Tripp's estate. Tripp and Catherine Marie Tripp were jointly registered as proprietors of a property, which was subject to two mortgages. The dispute centred around the enforceability of a debt owed to Westpac Banking Corporation, with the contention that the debt was for money advanced for an illegal business venture. The court was tasked with determining the validity of this contention and the enforceability of the debt.

The primary legal issue for the court to address was whether the debt owed to Westpac Banking Corporation was enforceable, given the contention that it was for funds advanced for an illegal business venture. The court had to assess the merits of this contention and determine the prospects of success if the matter were to proceed to litigation. Additionally, the court considered the offer made by Catherine Marie Tripp's family to purchase Tripp's interest in the property for $12,000, subject to certain terms.

The court found that the contention regarding the illegality of the business venture was unlikely to succeed, with minimal prospects of success in litigation. Consequently, the debt to Westpac Banking Corporation was deemed enforceable. The court also noted that the offer from Catherine Marie Tripp's family was a reasonable one, considering the property's value and the existing mortgages. The court approved the sale of Tripp's interest in the property to the family under the terms specified in their offer.

The court ordered that the costs of the trustee of and incidental to the application be taxed and paid from the estate of the bankrupt. The decision was made based on the analysis of the enforceability of the debt and the reasonableness of the offer to purchase the bankrupt's interest in the property.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established